quick service restaurants in CanadaDoes anyone know what company this article is talking about from motley fool
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Your Ticket to Superb Profits
from the QSR Trend!
The company franchises... and, in a few cases, operates, myriad quick-service restaurant brands in nontraditional locations throughout Canada: food courts, shopping malls, gas stations, convenience stores, movie theatres, or amusement parks. It franchises more than 2,500 niche restaurants (under a total of some 26 “banners”) with annual revenues of $100 million. The company has grown both through developing original concepts—often “ethnic” cuisines such as Chinese, Japanese, Korean, and Indian—and through acquisition of chains/brands over time. Some of the franchises are names rescued and resuscitated from the scrap heap. Others offer exciting growth prospects on their own merits. The Company’s Plan
for Rapid Expansion
One of the biggest things this stock has going for it is the company’s business model. As primarily a franchising play, it’s in what we call “the cheque-cashing business.” Each week/month, the legion of franchised stores (over 2,500 strong) all send their royalty cheques to the company’s headquarters. In addition, this rapidly growing conglomerate collects franchise fees from new operators, sells goods and services to franchisees, owns a food processing business that sells to distributors/retailers, and runs a small distribution center business predominantly selling to a couple of the franchisees. Being a cheque-casher has left this company in the enviable position of having a steady and recurring stream of free cash flow with little need for capital reinvestment in the business. That cash stream has to go somewhere, and that’s largely been into further acquisitions, adding compounded, high-quality growth to its cash stream.
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